States across America are cutting arts funding. “To be sure, it is an extraordinarily difficult time for state budgets. In the mid- to late ’90s, the states enjoyed healthy revenue streams and almost universally cut taxes and increased spending, including on programs mandated by the federal government (like Medicaid and standardized testing). Now, as the economy enters a second year of doldrums, the states — 49 of which are constitutionally required to keep a balanced budget, unlike the federal government—are paying the price for their earlier optimism. Nor does the horizon look particularly rosy, thanks to the federal budget policy being pursued by the Bush administration. With the president calling not only for elimination of the dividend tax, but an acceleration of the 2001 tax cuts, states are not likely to see more revenue any time soon.”